Silicon Metals Corp. Closes Initial Tranche of Its Strategic NFT and FT Unit Offerings for Aggregate Gross Proceeds of $145,000
Executive Summary
- Silicon Metals Corp. closed the first tranche of its non‑brokered private placement, raising $145,000 in total gross proceeds.
- The tranche consisted of 1,500,000 non‑flow‑through units at $0.05 each ($75,000) and 1,000,000 flow‑through units at $0.07 each ($70,000).
- Proceeds will be used for general working capital (non‑flow‑through units) and eligible exploration expenditures in British Columbia and Ontario (flow‑through units); the final tranche is expected to close next week.
Key Details
- Units Issued – Non‑Flow‑Through: 1,500,000 units @ $0.05 per share = $75,000 gross proceeds.
- Each unit = 1 common share + ½ common share purchase warrant.
- Whole warrant exercise price: $0.06; term: 24 months.
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Accelerator clause: if CSE price ≥ $0.15 for ten consecutive trading days, expiry may be accelerated to 30 days after trigger.
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Units Issued – Flow‑Through: 1,000,000 units @ $0.07 per share = $70,000 gross proceeds.
- Each unit = 1 common flow‑through share + ½ common share purchase warrant.
- Whole warrant exercise price: $0.10; term: 24 months.
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Same accelerator provision as above.
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Finder’s Warrants: Fees of $1,400 paid; 20,000 finder’s warrants issued.
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Each warrant exercisable into one common share at $0.07 for 24 months, with identical accelerator clause.
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Use of Proceeds:
- Non‑flow‑through proceeds → general working capital.
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Flow‑through proceeds → eligible exploration expenditures on projects in British Columbia and Ontario.
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Statutory Hold Period: All securities subject to a hold period expiring four months + one day after issuance (NI 45‑102).
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Regulatory Notes: Securities not registered under the U.S. Securities Act; cannot be offered or sold in the United States absent exemption or registration.
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Future Plans: Company intends to close the final tranche of the offering next week, subject to market conditions and regulatory compliance.